Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - UBS maintained its Neutral rating and $105.00 price target on Tapestry Inc. (NYSE:TPR) ahead of the company’s upcoming earnings report. According to InvestingPro data, the stock currently trades near its 52-week high of $118.56, with analyst targets ranging from $66 to $142.
The financial services firm expects Tapestry to deliver first-quarter earnings per share that exceed expectations by 11 cents and anticipates the company will raise its full-year 2026 EPS guidance by a similar amount from the current $5.30-$5.45 range. The company has demonstrated strong fundamentals with impressive gross margins of 75.4% and has delivered a remarkable 80.6% return year-to-date.
UBS believes Coach brand fundamentals remained strong during the first quarter and into the second quarter, but notes that investor expectations already reflect a 10-15 cent beat and raise scenario.
The market may also be expecting Tapestry to increase its implied second-quarter Coach sales outlook from the current high-single-digit percentage growth, according to UBS, which could pressure the stock if the company fails to meet these elevated expectations.
The options market is pricing in a 7.3% move in either direction following the earnings report, slightly above the historical average movement of 6.5%.
In other recent news, Tapestry Inc. has been the focus of several notable developments. BTIG initiated coverage on Tapestry with a Buy rating, highlighting the strength of the Coach brand and setting a price target of $140. UBS maintained its Neutral rating with a $105 price target, describing the company’s recent analyst day presentation as the best in two decades. Jefferies increased its price target to $125 from $120, maintaining a Buy rating and expressing optimism about Tapestry’s potential for durable growth. TD Cowen reiterated its Buy rating with a $125 price target, emphasizing Tapestry’s strong value proposition compared to European luxury brands.
Additionally, Tapestry announced that John P. Bilbrey, a member of its board of directors, will not seek re-election at the upcoming annual meeting. The company clarified that Mr. Bilbrey’s decision was not due to any disagreements. These recent developments reflect a period of strategic focus and positive sentiment around Tapestry’s brand strength and market position.
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